The president Donald Trump traveled on Tuesday to Sparrows Point, in Baltimore County, Maryland, to announce a public-private investment of up to $6.6 billion aimed at manufacturing components for Virginia-class nuclear submarines, which the White House described as a pivotal step to strengthen the country’s defense industrial capacity.
The event took place at the Tradepoint Atlantic complex, built on the former site of the Bethlehem Steel steel mill in Sparrows Point, which closed in 2012, and was attended by Secretary of Defense Pete Hegseth, who spoke before the president.
The defense technology company Anduril Industries will contribute $3.7 billion in private capital to build Arsenal-2, a facility of over two million square feet that is set to begin operations in 2030.
The United States Navy awarded Anduril a contract worth up to $2.9 billion for the production of components; payments will be tied to specific manufacturing outcomes, and Anduril will take on a significant portion of the execution risk.
The installation will begin by producing torpedo tubes, the shortage of which is currently delaying the delivery of several Virginia-class submarines under construction.
In later phases, larger modules will be manufactured, and possibly complete hull sections, which will be sent for final assembly to General Dynamics Electric Boat in Groton, Connecticut, and to Huntington Ingalls Industries in Newport News, Virginia, the only two shipyards in the country capable of building nuclear submarines.
Officials from the Trump administration estimated that Arsenal-2 could add about nine million work hours annually, equivalent to an approximate 15% increase in the production capacity of Virginia-class submarines.
In terms of employment, Anduril anticipates more than 3,100 permanent positions when the plant operates at full capacity, while the White House estimated over 13,000 direct and indirect jobs and an economic impact of about 2 billion dollars annually.
The state of Maryland and Baltimore County committed public incentives equivalent to up to 13% of the private investment, including a personal property tax exemption of up to $210 million over 30 years, although some items still require legislative approval.
The CEO of Anduril, Brian Schimpf, emphasized the historical significance of the site: "Sparrows Point helped build the fleet that won World War II. With Arsenal-2, Anduril will bring large-scale shipbuilding back to a place that can redefine American naval power." Trump summed up the announcement with a brief statement: "It's a great day for the United States Navy."
The project addresses a strategic urgency: the production of Virginia submarines is around 1.1 units annually, well below the official goal of two per year, and the Navy does not expect to recover that pace until approximately 2032. Estimates from June 2026 projected the U.S. attack fleet at about 46 units by 2030, compared to a historic need of 66.
The event was marked by a political dispute: the Democratic governor Wes Moore did not attend after claiming that the White House prevented him from speaking, even though his administration had worked for over a year to finalize the project.
"If the president wants to bring the circus to the city and tell me I can't speak when we helped bring about the agreement, I'll let the circus continue while I get back to the work for the people of Maryland," Moore stated. The White House maintained that the governor was indeed invited, but solely as an attendee.
Arsenal-2 is the second large-scale industrial project of Anduril, following Arsenal-1 in Ohio, and is part of the Trump administration's strategy to pressure the defense industry to invest in production capacity instead of allocating resources to dividends and stock buybacks.
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